For the Calculation of EVA, Current Liabilities Are Deducted from Total

question 125

Multiple Choice

For the calculation of EVA, current liabilities are deducted from total average assets for what reason?

• A) Because liabilities are not included in assets, and so they should be deducted.
• B) Because the current liabilities are due within a one year period.
• C) Because it is necessary in order to calculate the equity of the company.
• D) Because the funds needed to pay the current liabilities will not be available to generate income in the long run.

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Definitions:

Prefrontal Lobotomy

A surgical operation that severs connections in the brain's prefrontal lobe, once used to treat mental illness.

Amygdala

An almond-shaped structure within the base of the temporal lobe that is involved in the discrimination of objects that are necessary for the organism’s survival, such as appropriate food, mates, and social rivals.

Antipsychotic Medication

Drugs used to treat symptoms of psychosis such as delusions and hallucinations, typically in conditions like schizophrenia.

Involuntary Muscle Movement

Movement of muscles without the conscious control of the individual, often reflexive or automatic in nature.